The EU has doubled back on its plans to ban asset managers and insurers from paying financial advisers commission for recommending their investment products, according to reports.

In leaked documents of the EU's retail investment strategy, seen by the Financial Times, Brussels is opting for a ban on "executive-only" sales of investment products where no financial advice was delivered.

This is a step away from the full-scale ban the European Commission recommended last year, citing it as one of the most effective ways to remove conflicts of interest between providers and financial advisers.

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The move follows intense industrial lobbying against the initial proposals, the FT reported.

Research carried out by the CFA Institute, a non-profit organisation which provides investment professionals with finance education, in February found that a majority of professionals did not think a widescale ban would prevent mis-selling of investment products.

Surveying 1,000 investment professionals, just over a third (34%) agreed with the EU's initial thesis that a ban on inducement payments should be stopped.

Josina Kamerling, head of regulatory outreach for CFA Institute in EMEA, said in the study: "In our view, banning inducements is not the immediate solution, but addressing a number of key market structure issues is crucial." 

Kamerling added the "most important" regulatory reforms needed to help combat product mis-selling was "clearer and full disclosures of commissions and fees paid, and to introduce clear standards for product information including cost structures".